A Nigerian socialite, Chief Dokun Olumofin, has proposed a $500 tourism tax for Nigerians in the diaspora returning home during the festive “Detty December” period.
Tribune Online reports that Lagos hotels raked in a staggering N54 billion in December 2024, according to a report by advisory firm MO Africa Company Limited.
Suggesting how the government can take advantage of the period to generate revenue, Olumofin, in a formal letter to President Bola Ahmed Tinubu, outlined how the initiative could significantly benefit the nation’s finances.
In the proposal, Olumofin stated that imposing the tax on returning diasporans between November 25 and January 5 could raise as much as $125 million, or approximately N240 billion.
This revenue, according to him, could be channelled into positioning Nigeria as a global destination for festive celebrations.
The letter partly reads, “This letter outlines a significant opportunity for Nigeria to generate considerable revenue-potentially up to $125 million (240 billion Naira approx.)-based on an estimated contribution of $500 from 250,000 projected returnees.
“This revenue could be allocated towards developing tourism, positioning Nigeria as a premier global destination for festive celebrations.”
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The letter provides the following recommendations:
“1. Any incoming traveller to Nigeria who does not reside in the country should complete a form during this period, pay the applicable fees, and provide relevant documentation before entering Nigeria.
“2. A fee of $500 or its equivalent will apply to individuals aged 18 and above. The fee for individuals aged 10 to 18 is $150 for developed/advanced nations.
For less developed countries, fees may be reduced based on the country’s status, economic achievements, and recommendations from your team.
“3. Waivers should be considered based on management discretion. Examples are:
Children under 10, Citizens over 70, Military personnel, NGO workers, Undergraduate students, Individuals with terminal illnesses (e.g., cancer), Travel related to funerals and Diplomats on assignment to Nigeria or returning Diplomats.
“4. The proceeds from this initiative should be managed by an independent body, with leadership and management recommendations provided by the Lagos State Governor and the Federal Ministry of Tourism.
“5. Funds should be allocated to creative initiatives aimed at enhancing tourism, improving traffic management, ensuring world-class security in Lagos, providing tourist services, developing more tourist sites, and increasing advertising on global platforms (e.g. CNN). This includes marketing efforts, ambassadorial programs, and innovative ideas for the festive period.”
Acknowledging potential backlash, Olumofin emphasised that “progressive ideas often encounter scrutiny, especially when they have the potential to generate up to $1 billion in revenue for Nigeria over five years.” He expressed hope that his suggestions would be considered.
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